Question

In what capacity does the RBI act for the Central and State Governments?

• A. Tax advisor
• B. Bank of the government
• C. Trade representative
• D. Legal counsel

Answer 1

Answer:

B. Bank of the government

• RBI acts as the "Bank of the government" for the Central and State Governments.

• This is one of its key functions where it manages banking operations for government bodies, handles their accounts, and provides various banking services to both central and state governments.